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4 Mär 2022

Su-Bin Lee, The Korea Economic Daily

South Korea: Samsung and LG concern over shipping lines’ delivery halt to Russia after invasion of Ukraine

Samsung, LG fret over shipping lines’ delivery halt to Russia, 3 March 2022

Samsung Electronics Co. and LG Electronics Inc., South Korea’s two major exporters, are jittery about global shipping lines’ decision to suspend most of their deliveries to Russia as the West ramps up sanctions over the Ukraine war.

Samsung and LG, which operate TV and other home appliances factories in Russia, have said they have enough inventory of raw materials and components in Russia for the production of their products there.

But industry watchers say the Korean companies could face disruptions to their Russian plant operations if global shipping companies’ delivery halts are protracted...

While the European Union, Japan, the UK, Canada, New Zealand and a dozen other countries, which already announced their own sanctions against Russia, are not subject to the FDPR regulation, Korea is still seeking exemptions from the US.

Industry officials said Samsung and SK Hynix Inc. – the world’s two largest memory chipmakers – may be banned from exporting their advanced chips to Russia if the FDPR is applied.

A growing number of global companies, including Apple and Taiwan’s TSMC, the world’s largest chip foundry player, have declared the suspension of their product sales to Russia to join the US-led sanctions against the country...